What Percentage of My Income Should My Long Term Disability Policy Cost On an Annual Basis?
What Percentage of My Income Should My Long Term Disability Policy Cost On an Annual Basis?
Long Term Disability policy premiums will depend on your age, gender, health history and your occupation.
An important factor is the policy elimination period which is a specific length of time that you would go without getting benefits. People usually choose a ninety-day period of time to go without benefits at the onset of their disability. When that time is up, the company starts paying you benefits. The longer your elimination period, the cheaper your premium. I’ve seen it as long as a year and would not encourage you to having it that long. I would suggest a ninety-day elimination period. You can also choose how long you will pay benefits.
Most companies will let you choose between benefits that last two years, five years, at age 65, age 67 and the rest of your life. Obviously the longer the benefit, the more expensive your policy will be and it is hard these days to find policies that will pay you for the rest of your life.
I don’t encourage anyone to get a Long Term Disability policy for 2-5 years, rather, a Long Term Disability lawyer Nancy Cavey, suggests that you have a Long Term Disability policy that has an age 65 option because that is when your Social Security will kick in.
Remember, regardless of the price tag, you are insuring you and your ability to work. As a breadwinner you have an obligation to yourself and your family to provide them with support even in a time of disability. Keep that in mind when giving up the cost of your disability policy.
Long Term Disability lawyer, Nancy Cavey, based in Florida, has written a free consumer guide Robbed of Your Peace of Mind, regarding the policy terms that you don’t want to see in your policy. If you are thinking about buying a disability insurance policy, you can order a free, no obligation copy of this book which retails for $19.95. This book will help you as you shop of disability policies.